Layne Christensen Prices $100 Mln Senior Secured Second Lien Convertible Notes

(RTTNews) - Layne Christensen Co. (LAYN), a provider of water management, construction, and drilling services, said it has priced its issuance of around $100 million aggregate principal amount of 8 percent Senior Secured Second Lien Convertible Notes.

The notes will be issued to certain of the existing holders of the company's 4.25 percent Convertible Senior Notes due 2018, who have agreed to exchange $55.5 million of their existing convertible notes for about $49.9 million of the notes and to purchase around $49.9 million aggregate principal amount of additional notes for cash.

The net cash proceeds from the sale of the notes, after deducting placement agency discounts and commissions, estimated offering expenses payable by the company and accrued interest on the existing convertible notes being exchanged, will equal approximately $45.1 million.

Layne Christensen plans to use the net cash proceeds to repay amounts outstanding under its existing asset-based credit agreement and for general corporate purposes.